Published June 8, 2009

KL to be more flexible with new 5-year plan

Growth plan to have room for frequent adjustments

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(KUALA LUMPUR) The 10th Malaysia Plan (2011-2015) will be more flexible, with room for more frequent adjustments compared with previous growth plans, says a report in Malaysia's Business Times.

New challenges: The 10th Malaysia Plan (2011-2015) will be drafted according to a new economic model to be announced by Mr Najib soon Growth plan to have room for frequent adjustments

Minister in the Prime Minister's Department Nor Mohamed Yakcop said the flexibility was necessary as more challenges were expected in future.

The planned changes in Malaysia's five-year growth plan mean that the usual mid-term review will be done away with.

'One of the approaches is to execute the plan in a rolling format every two years with an annual update which will ensure that the outcome is in line with the national development strategy,' Mr Nor Mohamed said at a media briefing after presenting excellence awards at the Economic Planning Unit in Putrajaya on Friday.

'The key to overcoming challenges of tomorrow is flexibility because the challenges can come from unexpected angles, but if you have the flexibility to move, you can overcome. Of course, you must have the ability to anticipate (challenges) but flexibility is key,' he added.

He said drafting of the 10th Malaysia Plan will start earlier to ensure equitable development.

The plan will be drafted according to a new economic model which will be announced by Prime Minister Najib Razak soon.

On the economy, Mr Nor Mohamed said while there has been good news in the global economy, the impact has not reached businesses yet.

The government recently revised the outlook of the Malaysian economy, saying it is expected to shrink by between 4 and 5 per cent this year, its biggest fall in a decade.

Plummeting exports and a sluggish manufacturing sector due to a weak external demand for electrical and electronic products have led to the contraction.

'We are not going to get a V-shaped recovery even though the worst is said to be over. Instead, we need to quickly transform into a new paradigm by giving focus to certain sectors that place emphasis on high income,' he said.

He said the high income has to come based on innovation, creativity and higher value added and lower cost of doing business to attract prospective investors to Malaysia.